Section 185.16.13. Advertising.

An industry member is prohibited from paying a retailer, directly or indirectly, to advertise the industry member’s alcoholic beverages products.

         16.13(1) An industry member is prohibited, directly or indirectly, from sharing the cost of an advertisement with a retailer.

         16.13(2) An industry member is prohibited from purchasing advertising from a retailer on such things as, but not limited to, signs, scoreboards, programs, scorecards, and tote boards in ballparks, stadiums, auditoriums, racetracks, arenas, bowling alleys and all other retail establishments.

         16.13(3) An industry member may furnish a billboard or “spectacular” sign to a retailer. The sign must bear conspicuous, permanently affixed advertising which identifies the industry member or the industry member’s alcoholic beverages products. The sign may be displayed within the establishment or on a fence or similar enclosure facing into the establishment.

If the billboard or sign has secondary value (i.e., electronic, mechanical or manual message center, scorekeeping capabilities, menu board) other than mere advertising, an industry member may furnish a billboard or “spectacular” sign to a retailer provided:

            a.               The sign is not on a premises covered by a license or permit;

            b.               The sign is not owned by a retail licensee or permittee;

            c.               The retailer is not compensated, directly or indirectly, in conjunction with the placement of the sign or advertising thereon;

            d.               The furnishing of the “spectacular” sign by an industry member shall not result in exclusion (which includes, but is not limited to, preferential treatment), in whole or in part, of a competitor’s alcoholic beverages products in the retail establishment; and

            e.               The billboard or “spectacular” sign does not contain or show an advertisement naming or advertising any retailer, or provide any other secondary utility value for the retailer.

         16.13(4) An industry member may purchase advertising in a publication owned by an incorporated nonprofit trade association of retail members. The publication shall be disseminated to the membership of the association on a regular basis. No revenue derived from the advertising shall be used for the benefit or use of any individual member.

The fact that an industry member did not advertise in the publication shall not be used in any way by the membership jointly or severally to effect a restraint of trade of the brands carried by the industry member failing to advertise.

         16.13(5) An industry member may give, furnish, loan, rent, or sell copy ready art, newspaper cuts, mats or engraved blocks to retailers for use in retailers’ advertisements.

         16.13(6) An industry member may furnish a retailer with inside signs, including posters, placards, mechanical devices and window decorations and point-of-sale advertising matter (table tents, menu clip-ons) which have no secondary value to the retailer and are designed solely to promote the alcoholic beverages product. An industry member is prohibited from paying the retailer for any incidental expenses related to the operation of the inside sign.

This rule is intended to implement Iowa Code sections 123.45 and 123.186.

[ARC 1992C, IAB 5/13/15, effective 6/17/15]